Risk Mitigation

Risk Mitigation is the process of minimizing the likelihood of a risk being realized or the impact of risk. When the risk is identified and assessed, you need to mitigate risk in several recognized ways. Some mitigating actions decrease the likelihood of the risk occurring and its impact. To properly mitigate risk, a project manager must know how to effectively and efficiently manage it. Risk mitigation techniques begin at the conception stage of the venture and are followed throughout the life cycle of the project.

Risk Management: The main objective of risk management is to ensure that uncertainties never harm the established business goals. It is a process that involves the identification, evaluation and prioritization of risk to control the probability of its impact.

Risk Identification: The major purpose of risk identification is to recognize, uncover and describe risks that could affect the outcome of your project. Identifying an issue and discussing it in advance is important to begin the risk management process. There are various techniques that organizations use during the identification process to establish robust risk management strategies including:

• Brainstorming
• Self-assessments and interviews
• Risk surveys
• Root cause and Checklist analysis
• SWOT analysis
• Influence diagrams
• Expert judgment
• Assumption analysis

During this initial phase, identifying the causes of an issue and developing preventative techniques is the main focus for identifying risk.

Risk Analysis: Once risk is identified, it is time to analyze and prioritize them to understand its greatest impact on the project.

Planning: The planning step is more about getting ready for risk and continuous management. The following are some simple techniques that will simplify the planning process for you:

• Evaluations and Meetings: Ongoing risk assessments and status meetings should be scheduled for the reevaluation of existing risks and the closing of risks.
• Risk Audits: Auditing and documenting how existing risk responses are is part of the auditing process.
• Variance and Trend Analysis: Cross-checking planned results with actual results using performance data to control and monitor risk events.
• Technical Performance Measurement: Comparing technical performance measurement as the project is executed to what is on the main schedule.

Risk mitigation is not only understanding and knowing when risks may arise but also planning for them and establishing an ongoing process to continually mitigate risk. With thorough identification, assessment and planning, the risk factor can be properly mitigated and the project rebuilt successfully.